“Users can pay for groceries or a pumpkin spice latte with just 25 percent down, and the remaining 75 percent split into four payments over the following six weeks,” writes Jarryd Jaeger for The Post Millennial.” These little quick-loans are supposed to be interest free but there’s FEES and CHARGES that will increase the cost dramatically the more you borrow and the longer you take to pay it all back.
The article quoted here says that twice as many Americans are taking out these grocery-counter quick loans to pay for their food as they did last year. This tells us a lot of things about the state of our economy.
First is that the people doing this are probably unemployed or are only working part time and at minimum wage jobs. Second is that this sort of thing always escalates. When you have to buy FOOD with a loan, that means you’re broke. Out of money. You can’t pay your utility bills, you can’t buy gas for your car. You’re broke. Because people will always pay for food before they pay for anything else.
People won’t do this just once. They don’t have to make the first payment for 10 days and meanwhile it’s like having another credit card to charge on, and over that ten days they’ll buy a lot more stuff, thinking that they don’t have to pay for it right away. But soon the payments are more money than they can pay, they miss payments or do partial payments and the credit line is shut off until they can pay it up. Then the grocery store giving them this credit will only accept cash from them.
The more people do this, the bigger a debt the American public carries generally and the bigger a loss businesses will take when this house of cards collapses because most of these people will have built up a much larger debt than they could pay.
If all the major grocery stores sell for 25% of value with the rest on credit and no one pays off the balances, the grocery stores will all go out of business. Then where will people buy food? Hmmm?
If some of the public can’t pay their food bills, what happens to them is that their credit is revoked and the only way they can get any food now is to either pay cash or to steal it. We may be seeing a lot of starving Americans, grocery store robberies, all sorts of other robberies, another reason for violent crime to increase, murders, riots…
Are you starting to see just how bad this really is? Buy now, pay later is not okay, it’s dangerous as hell. Now is not the time to start extending short term credit to the public at large, it’s the worst time. This sort of thing works when we’re all working, and prosperous. Not now when unemployment is high and we’re reeling under the influx of millions of illegals.